The exploration of microorganisms as productive sources of carotenoids has opened new views in the field of biotechnology and natural product research. This chapter explores the diversity of microorganisms, including bacteria, fungi, algae, and yeasts, which have shown remarkable proficiency in synthesizing carotenoids. These natural pigments, known for their vibrant colors and health-promoting properties, are crucial in various applications ranging from food and cosmetics to pharmaceuticals. The focus of this chapter is on microorganisms that are capable of producing these valuable compounds with high antioxidant and health-benefiting properties. The discussion encompasses different microbial groups, examining their unique metabolic pathways, and the environmental conditions that optimize their carotenoid production. Special emphasis is placed on the latest advancements in extraction procedures from yeast cells, especially Rhodotorula species, which have significantly enhanced the yield and efficiency of carotenoid production in biotechnological systems. The chapter also addresses the challenges and prospects in scaling up and industrial applications. The role of carotenoid-producing yeasts as a sustainable and efficient source of carotenoids is highlighted offering an eco-friendly alternative to synthetic production methods.